C*mmunication an integral tool of risk management
In every organisation, the most important goal is to meet its objectives and reduce or prevent risks. This is done by taking into account social, cultural, ethical, political, and legal matters that may impact on organisations objectives.
Today, organisations aiming to achieve targets must take into consideration risk management—the process of identifying, probing and responding to the risks an organisation faces and or is exposed to at a given time. This is a rigorous and continuous process whose outcome informs decisions within an organisation. The overall goals being to prevent losses, avoid threats and exploit opportunities presented by risks.
Today, most organisations have established departments whose sole objective is to manage risks and inform management on critical decision to be made. This underpins the importance of risk management in organisations.
However, for risk management to be effective, communication is critical. Effective risk communication is a precondition for proper risk assessment and management.
Communication helps build and encourage transparency and confidence of the risk mitigation process and encourages broader understanding and acceptance of risk management decisions.
Granted, risk assessors and/or managers and other players within the risk management process all need risk communication skills.
It is important to understand that communication in risk management is a two-way process that involves sharing information amongst risk managers (internal) and sharing information between risk managers and external stakeholders (external). When planning for communication in risk management, a vital step is to determine what your goal is and the risk assessment strategy. What are the outcomes of a risk assessment? Who needs to participate? What kind of communication should take place?
Effective risk communication should achieve a number of goals, including encouraging awareness and understanding of issues under deliberation during the risk analysis process; promoting transparency while formulating recommendations and providing sound foundation for understanding the risk management decision.
Communication in risk management is neither public education, nor is it public relations. It is a tool to enhance risk management. Communication of information and opinions on risks within an organisation is essential and integral component of the risk management. The ultimate goal of communication in risk management is to provide meaningful, relevant and accurate information, in clear and understandable ways targeted to a definite audience.
It is important to note that communication may not resolve all risk variances between parties, but may lead to a better understanding of those risk variances. It may also lead to more extensively understood and acknowledged risk management decisions. Effective communication should build and maintain trust and self-assurance between risk managers and within an organisation. Further, communication should facilitate more consensus and support by all involved parties for the risk management option(s) being proposed.
The writer is a communication specialist
